Post Utme Uniport 2024 Commerce Question 14

Practice objective / multiple choice question 14 from the 2024 Post Utme Uniport Commerce examination.

Post Utme Uniport 2024 Commerce Objective / Multiple Choice
Question 14 POST_UTME_UNIPORT • 2024 • COMMERCE • objective

A company's insurance policy covers losses due to fire, theft, and liability. However, the policy excludes losses due to flood and earthquake. What is the legal effect of this exclusion?

Answer Options

Correct Answer A. The exclusion is valid and the company is not entitled to claim for losses due to flood and earthquake.
B. The exclusion is invalid and the company is entitled to claim for losses due to flood and earthquake.
C. The exclusion is valid but the company can still claim for losses due to flood and earthquake if it can prove that the losses were not caused by the excluded events.
D. The exclusion is invalid but the company must still pay the premium for the excluded events.
Correct Answer
A
Correct Option:
The exclusion is valid and the company is not entitled to claim for losses due to flood and earthquake.

About This Question

This is Post Utme Uniport 2024 Commerce Question 14. It is one of the objective questions from the 2024 Post Utme Uniport Commerce examination.

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